SARFAESI alternative remedy and title disputes bar writ relief and consumer forum conveyance orders over auctioned property.

Where SARFAESI measures under Sections 13(4) and 14 are challenged, writ jurisdiction is ordinarily not invoked because an effective statutory remedy lies under Section 17; the challenge was therefore held not maintainable and the aggrieved party was left to that remedy. Once the secured asset had been auctioned and a registered sale certificate issued, title had accrued to the auction purchaser, so relief to restrain sale or dispossession and to unsettle those rights was unavailable. The Consumer Forum, being a forum of limited jurisdiction, could not adjudicate disputed title to immovable property or compel execution of a sale deed. The writ petition failed and the interim order was vacated.

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Issues: (i) Whether the challenge to the order passed in proceedings under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002 was maintainable in writ jurisdiction despite the statutory remedy under Section 17 of that Act; (ii) Whether relief could be granted to restrain sale or dispossession and to negate the rights flowing from the auction sale and registered sale certificate in favour of the auction purchaser; (iii) Whether the Consumer Forum could adjudicate title to immovable property and direct execution of a sale deed.

Issue (i): Whether the challenge to the order passed in proceedings under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002 was maintainable in writ jurisdiction despite the statutory remedy under Section 17 of that Act.

Analysis: The disputed order had been passed in SARFAESI proceedings. The statutory scheme provides an effective remedy under Section 17 to any person aggrieved by measures under Section 13(4) or action under Section 14. The rule of exhaustion of alternative remedies applies with particular force in matters concerning recovery of bank dues, and writ jurisdiction is ordinarily not to be invoked where the statute supplies a complete redressal mechanism.

Conclusion: The challenge to the Section 14 order was not maintainable in writ jurisdiction and the petitioner was left to pursue the remedy under Section 17.

Issue (ii): Whether relief could be granted to restrain sale or dispossession and to negate the rights flowing from the auction sale and registered sale certificate in favour of the auction purchaser.

Analysis: The property had been mortgaged, the secured creditor had proceeded under Section 13(4), the property was auctioned, and a sale certificate had been issued and registered in favour of the auction purchaser. In these circumstances, title had accrued to the purchaser and the petitioner, who had no pre-existing title, could not obtain the protective or quashing relief sought against the consequences of the completed SARFAESI sale.

Conclusion: The petitioner was not entitled to the reliefs sought against the auction sale and the registered sale certificate.

Issue (iii): Whether the Consumer Forum could adjudicate title to immovable property and direct execution of a sale deed.

Analysis: Though a consumer forum may examine deficiency in service concerning immovable property, it is a forum of limited jurisdiction and cannot adjudicate disputed title to immovable property or compel execution of a sale deed where ownership and sale rights are in issue and the property had already been dealt with under SARFAESI proceedings.

Conclusion: The Consumer Forum lacked jurisdiction to grant the relief of title adjudication and execution of sale deed.

Final Conclusion: No ground for interference was made out, the writ petition failed, and the interim order stood vacated.

Ratio Decidendi: Where an effective statutory remedy exists under the SARFAESI Act, writ jurisdiction should ordinarily not be exercised to challenge measures under Sections 13(4) and 14, and a consumer forum cannot decide title to immovable property or order conveyance of title beyond its limited jurisdiction.

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